This research note addresses the debate as to whether tax evasion resultsfrom increased tax rates and economic incentives-as many economists claim -orfrom other factors as well, specifically taxpayers 'perceptions that taxes are unfair. Using survey data collectedfrom 1960-1980 and information on tax rates and estimates of tax evasion for that period, the authorfinds that tax evasion increased during this time, as did the percentage of Americans considering taxes unfair, even as tax rates remained stable. Moreover, those Americans presumably having the lowest incentives to cheat were most likely to consider taxes unfair. This information leads the author to conclude that a growing sense that taxes are unfair is more likely than increasing tax rates and one's level of income to lead to tax evasion.
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